Brianna Wilson,
Managing Editor,
Monitor

In Q1/24, we explored the politicization of diversity, equity and inclusion (DE&I), especially as a result of the Supreme Court’s decision to overturn affirmative action midway through 2023. In Q2/24, we talked to a number of leaders who remain committed to DE&I across the equipment finance industry, who made a call to action for fellow leaders to double down and expand upon DE&I efforts.

As we head into year-end and, soon, turn the page to 2025, nobody knows what the state of DE&I will be. Will we continue sparking social movements like #MeToo and #BlackLivesMatter, or will we start to chart a different kind of future?

This “DE&I cycle” of making progress, seeing the value and uniting around what is possible, then turning critical, divisive and questioning of the purpose is absolutely nothing new.

The DE&I Cycle

A few years ago, it felt like there was a consensus around DE&I — that it is beneficial for all and that it has meaning far above racial equality; but, for the past nearly two years, DE&I perceptions have dropped,[1] and the term has taken on a political undertone.[2] This is, in part, due to the fundamental way organizations, from governments to businesses, work.

The best way to illustrate this is an example we’re all familiar with: the U.S. government. Often, a group of people affected by an issue will, by whatever means possible in a situation, bring it in front of lawmakers and government officials to make a change. These changes are left in the hands of the applicable government body, whose decisions influence everyone; they trickle down to regulations impacting companies and, sometimes, laws that citizens must abide by (or that states must decide upon). It’s the simple principle of democracy that we’re all familiar with.

Many companies work this way too. Demands come from the top, often in response to clients’ needs. In the middle of this are company employees. Those who are passionate or brave enough — or, in great company cultures, empowered enough — to stand up for themselves or bring an idea to the table can make a difference at the highest level (which, again, trickles down and affects everyone else), sometimes beyond his or her span of responsibility or authority, and effect organizational change. However, typically, you can’t implement something without support and approval from the higher-ups.

Representation Matters

A decision-making approach can be treacherous in cases where there is little representation on matters that affected certain groups of people. Take, in another government-level example, what happened with Roe v. Wade. For years, Roe v. Wade protected women’s rights to abortion. The law came into effect following the same structure outlined above — a woman, called “Jane Roe” in legal documents, brought an issue affecting her and many other women across the country to court, and ultimately influenced a change across the nation.

Fast-forward to 2022; in a five to four decision, the Supreme Court overturned the ruling. Involved in the vote were nine justices[3] — only three of whom were women. Four men and one woman voted in favor of overturning a law that primarily affects women, resulting in many women across the country losing a constitutional right that they had two years ago.

Representation truly matters. If there were more women voting for or against Roe v. Wade in 2022, would it have been overturned? It’s impossible to know for sure, but if all men were taken out of the above equation, the ruling would have been opposite — one woman would have voted to overturn it, and two women would have voted to uphold it.

Arguably, other decisions move at a slow pace due to the underrepresentation of affected groups. Going even further back to the long, gruesome history of slavery in the U.S., when Abraham Lincoln committed to abolishing slavery, he did so in incremental steps because his priority was preserving the Union (the Northern U.S.).[4] We know the history after that: once slavery was abolished, many states enacted Jim Crow laws and legalized segregation. Once again, this came to an end because of the endurance of the affected group through the civil rights movement, which ultimately led to the removal of Jim Crow laws and the voting rights of Black citizens.[5] This process took more than 100 years — from 1865 to 1968. How much faster would the outcome have been realized if Black people had been represented in decision-making processes and held decision-making positions?

The Future of DE&I

The next few years will be interesting. Who knows if companies that completely abandoned their DE&I initiatives will reconstitute their missions, or if companies that are currently doubling down on their initiatives will eventually give into the mood of the moment, legal pressure or trends? Who knows if some of the laws that have been overturned will be re-written into practice? Who knows if we’ll see a shift toward adequate representation of different groups and opinions in decision-making processes and positions?

While DE&I may seem to be at a standstill, it’s more likely that we’re in some sort of transitional phase, and that efforts to promote DE&I initiatives will be on an uptick in the future. It may not happen soon, especially given the current political climate and the “your body, our choice” mantra that a number of men on social media are perpetuating,[6] but there are clear trends, particularly among Gen Z, that are likely to make their way into protests, court cases and law.

So if DE&I will be on the rise again, how will your company respond?

Your Turn

The Equipment Leasing and Finance Association recently reported that this is now a $1.3 trillion dollar industry. Equipment finance has an incredible impact on the U.S. economy, and companies often have an incredible impact on each other, especially in such a tight-knit industry. Taking action now to position your company as forward-thinking, with diversity of thought represented at all levels, will set your company ahead of the curve for the benefit of all stakeholders — your people, your clients, your communities and, likely, your investors.

To the C-Suite: Are you missing pertinent opportunities to move your organization forward due to a lack of diversity — too few women, people of color, those with different abilities, opinions, perspectives, backgrounds or even styles? Is the downside risk costing you innovative ideas that enhance and grow your business, making your company the ideal solution for your customers? Could a lack of diversity result in higher employee and customer turnover, or limit relationships with vendors and suppliers?

To middle management and employees: Take action. Stand for what you believe in and don’t be afraid to take your concerns, ideas and questions to the next level of management. Remember: Advocates make a difference. Various unions have been responsible for better wages — employees ensure their voices are heard in the decision of how they are paid and compensated for their work. Most of us are in a position to have our voices heard and to make a difference. The worst that could happen is you get a “no;” then, you seek to find how to turn that “no” to a “yes.” You refine your presentation or your idea and you re-approach the decision-makers again.

Advocating for what you personally believe in, or what your people believe in, is powerful, and just one voice can create the tipping point it takes to pave the way for a better future and increase everyone’s quality of life. People will be engaged, satisfied and able to focus on advancing their careers and their company when they know they’re properly represented and their voices are heard.

[1] “The state of DEI in 2024: Key takeaways and insights,” cultureamp.com, 5.16.24

[2] Fogarty, Katharine and Talvacchia, Gabrielle, “Supreme Court’s Ruling in ‘Students for Fair Admissions’ and Its Impact on DEI Initiatives in the Workplace,” law.com, 11.8.24

[3] Breen, Kerry, “Who voted to overturn Roe v. Wade and who voted to uphold it,” today.com, 6.24.22

[4] History.com Editors, “Emancipation Proclamation,” history.com, Updated 9.20.24

[5] History.com Editors, “Jim Crow Laws,” history.com, Updated 1.22.24

[6] Duffy, Clare, “‘Your body, my choice’: Attacks on women surge on social media following election,” cnn.com, 11.11.24